Ghana will forgo an estimated GHS 18.15 billion in tax revenue by 2027. This projection comes after the government abolished the Electronic Transfer Levy (E-Levy) and the COVID-19 Health Recovery Levy. The Centre for Policy Scrutiny (CPS) published this finding in a new fiscal analysis.
The removal of these two taxes greatly weakens the government's ability to raise money. The E-Levy alone will result in a cumulative revenue loss of about GHS 8.2 billion by 2027. The COVID-19 Health Recovery Levy will account for an additional GHS 9.95 billion in lost revenue over the same period. This combined GHS 18.15 billion shortfall poses a challenge to public finances.
This policy shift affects Ghana’s broader economic landscape. The government introduced the E-Levy in 2022 to broaden the tax base through digital payments. Its performance was volatile, missing its initial GHS 6.9 billion target in its first year. Before its removal in April 2025, it collected over GHS 1.8 billion in 2024. The COVID-19 Health Recovery Levy was a more stable revenue source. It generated over GHS 1.72 billion in 2022 and GHS 2.94 billion by 2024. The loss of these revenues means the government must find alternative ways to fund its spending.
Fiscal policy and tax expert Isaac Danso Agyiri presented these findings for the CPS. He noted that the COVID-19 levy was stable due to its broad reach within Ghana’s consumption tax system. Mr. Agyiri warned about the financial impact of removing these taxes. He said, “The projected GHS 18.15 billion revenue loss is significant. Without well-designed compensatory measures, this could create additional pressure on public finances and affect government’s capacity to meet its expenditure commitments.” He highlighted that these taxes placed a heavy burden on low- and middle-income earners using mobile money. Their removal therefore improves fairness and provides relief.
The main implication is increased pressure on Ghana’s public finances. The government needs to find new revenue sources or cut spending to manage this shortfall. Decision-makers will closely watch how the government addresses this gap. The removal of the E-Levy may also boost mobile money transactions and financial inclusion. This could reverse an initial slowdown after its introduction. Scrapping the COVID-19 levy might also reduce costs for goods and services. This could ease price increases and support consumer spending.
The study also examined the betting tax, which contributed little revenue. It generated between GHS 78 million and GHS 80 million, far below annual projections of GHS 1.2 billion. The report acknowledges government efforts to cushion the impact. These include reforms to the Value Added Tax system and improved tax compliance. However, these measures may not fully offset the expected losses. Dr. Adu Owusu Sarkodie, Executive Director of CPS, stressed the need for evidence-based policymaking. He stated, “Discussions on tax reforms must go beyond political considerations and focus on data, fairness and sustainability.”